A record-high rental bid of S$52,188 per month for a GP clinic in a Housing and Development Board (HDB) block in Tampines has prompted concern from Health Minister Ong Ye Kung, who described the figure as “dismayed” and potentially detrimental to healthcare affordability.
The winning bid, submitted by I-Health Medical Holdings, secured a 50 square metre ground-floor unit at Block 954C Tampines Street 96.
The tender closed on 14 January 2025, and was awarded in March.
In a Facebook post on 4 June, Ong stated that such high rents “must translate to higher cost of healthcare one way or another”, potentially undermining the Ministry of Health (MOH)’s efforts to maintain affordable primary care.
He emphasised that higher rental rates do not necessarily equate to better healthcare outcomes for residents.
The post followed online debates that began after Dr Hisham Badaruddin criticised the rental amount on LinkedIn, calling it “obscene”. The post was widely circulated and further discussed on Reddit’s r/singapore forum.
The unit’s rental works out to over S$1,000 per square metre, marking one of the highest rates ever recorded for HDB clinic spaces.
Responding to the controversy, I-Health co-owner Andrew Chim defended the bid, citing strategic considerations.
He explained that the location was highly desirable, being near five Build-To-Order (BTO) projects housing around 5,000 households, with additional developments like a mall and mixed-use buildings in progress.
Chim asserted that consultation fees would remain competitive, ranging from S$30 to S$35, similar to those of other heartland clinics. He also outlined plans for extended opening hours and eventually expanding operations with a second doctor.
I-Health projects the clinic will become profitable within 18 to 24 months.
Nonetheless, public responses have questioned the viability of such high rents, expressing fears that they could lead to industry-wide inflation in rental rates and healthcare costs. Social media users raised concerns about access to care for lower-income residents and the sustainability of such business models.
In light of such concerns, MOH and HDB have begun implementing a new tender evaluation framework. Launched in May 2025, the Price-Quality Method (PQM) was piloted for a GP clinic tender at Bartley Beacon.
Under PQM, 70% of the evaluation score is based on the quality of care proposed, while only 30% relates to the rental amount. Key quality factors include care models, staffing levels, and clinic hours.
The Bartley Beacon unit, larger than standard HDB clinic spaces at 100 square metres, is designed to support more comprehensive and multi-disciplinary healthcare services.
Ong noted that the response to the Bartley tender has been positive, with bid prices significantly below that of the Tampines site on a per square metre basis.
He confirmed that the Tampines bid predated the new evaluation model, having been submitted in December 2024.
However, based on encouraging feedback from the Bartley pilot, the PQM approach will become the standard for future GP clinic tenders in HDB estates.
Ong stated that this shift would help ensure both better healthcare quality and greater affordability.
Recent HDB tender records indicate that the Tampines bid is part of a broader trend of rising rental costs. For instance, a January tender for a clinic at Block 235B Tengah Garden Walk was awarded at S$40,088 per month, while Caring Medical Clinic won a unit at Block 666 Tampines Street 64 with a S$25,388 bid.
In another example, Normanton Healthcare Pte Ltd secured a unit at Block 88A Telok Blangah Heights for S$16,800 per month in March, while Caring Medical Clinic paid S$26,900 for a unit at Block 568B Champions Way.
These figures suggest growing demand for strategic clinic locations in densely populated estates.
The Healthier SG initiative, under which the PQM model is being implemented, aims to shift Singapore’s healthcare focus toward preventive care and long-term health management.
The Bartley Beacon clinic is expected to begin operations in the fourth quarter of 2025. If successful, the model may be expanded to additional sites, reshaping how clinic tenders are evaluated nationwide.
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